It may be deemed a managed investment scheme which puts the same compliance burden on you as an unlisted mortgage fund ie you need an ASIC approved prospectus and a financial services license, licensee as responsible manager as well as regular independant audits etc. I suggest it may not be as easy as you think to set up.

A 0.2% lower rate on an average investors total loan balance is much more than $400. Smoke and mirrors. Competition is heating up though which is great.

"Subject to getting a suitable development approval, in that should I need to, I could deem ANY development approval unsuitable and walk away. It needs to be noted that wouldn't be my intent, just a security blanket"Thats exactly what an option is designed for, so you have an out. I certianly wouldn't sign a contract with that clause  in it.…[Read more]

Wow sounds like a good starting point for your business. You could buy a modest owner occupied home first, take advantage of all the grants and stamp duty concessions. Pay your mortgage off quickly with your business profits and then start accumulating investment properties once you have your owner occupied lvr below 50%. Just an idea.

If it’s a company borrower no responsible lending law applies. That said you will need to cap at 70% lvr max and you will struggle with the condition of the property to get the finance IMO. What about say a 30% lend against the as is value with the vendor providing a second mortgage for the 70% + costs that is payable in 1 years time. You might…[Read more]

Hi,I can recommend Peter Alvarez from Navigate Wealth. He is an independant financial planner and unlike others is not opposed to property invetsment (he is a buyers agent also). I have sent clients and friends to see him.http://www.navigatewealth.com.au/ContactUs.aspxCheers,

Hi Kev,I have a few developement lender contacts also. No presales required and capped interest for the right deal. Happy to have a look at it for you as well. Please include GST in all costs and realisation figures for me thanxs.Link to my development finance page.http://mortgageexpertsonline.com.au/development_finance/development-finance.htmCheers,

Orange Orange Orange

Westpac canned their 85% no LMI ages agoANZ canned medical practioners package about 2 months agoThere are still 2 reputable / competitive lenders who offer 85% no lmi on certain deals both are foreign banks.

Hi,Can you advise why CBA did not like this deal please? The LVR seem OK as 89% + LMI Purchase price ($320,000) + purchasing costs ($13,000) + existing loan balance ($325,000) / value of both properties ($735,000) = 89%I havent checked servicing ability but that look OK too from

Adelaide bank have gone the other way though and just require a very non binding declartion by the accountant.

You have to play by the banks rules…if you will have trouble financing it so will the people you eventually sell to.The reason banks dont lik'em is they much more resemble a commercial property as most you cant "live" in thus the intrinisic value is greaty reduced. You would want commercial rates of return for the risk….and never buy a "new…[Read more]

Hi TLP,Your first option may be possible however you would have to buy the prop first, then after settled you could use a licensed contract builder to do the reno. A lender will only take the improved value from the reno into account if you are using a builder, they wont use the "as completed" valuation if you plan to do the work yourself. The r…[Read more]

ing $300K plus is 6.96% with $499 app fee no ongoing fees.

Hi,If your sitautaion is not too complicated then I would consider ING if I was looking for a loan myself at the moment. Good service, good rates not too many fees + $1000 rebate offered at the mo if you refinance and open a transaction account with them.Other non big 4 lenders to consider could be Suncorp, AMP (bad service at the moment due to…[Read more]

If you have other property borrow against that to finance 20% deposit + purchase costs + reno costs

Hi Nick,It probably would be feasible however as a risk V reward I wouldn't buy off the plan with your equity levels. If the market has even a small downturn between when you exchange and when you need to settle you may be left with an LVR that is unacceptable ie over 90%.True there are some lenders who will go to over 90% (up to 95% max) for i…[Read more]

as has gone up in value I am assuming it was not a low doc originally?Meant to say as has gone up in value but LVR is still around 80% then wasnt a low doc originally ?

Hi,Yes sounds off to me… as has gone up in value I am assuming it was not a low doc originally?Why are you refinancing is it to get equity / cash out? The purpose of the loan may be the issue..Cheers,

The loan amount required:* $325,000 + costs (say $3000 assuming no stamp duty ) = $328,000* $328,000 – $26,000 (deposit) = $302,000 base loan required* $302,000 / $325,000 = 92.9% LVR. This is acceptable to a number of lenders.* $302,000 + mortgage insurance = total loan amount requiredThe savings requirement:* 5% of $325,000 = $16,250 = minimum…[Read more]